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The Behaviour of Small Investors in the Hong Kong Derivatives Markets: A Factor Analysis

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  • Tai-Yuen Hon

    (Department of Economics and Finance, Hong Kong Shue Yan University)

Abstract

This paper investigates the behaviour of small investors in Hong Kong’s derivatives markets. The study period covers the global economic crisis of 2011- 2012, and we focus on small investors’ behaviour during and after the crisis. We attempt to identify and analyse the key factors that capture their behaviour in derivatives markets in Hong Kong. The data were collected from 524 respondents via a questionnaire survey. Exploratory factor analysis was employed to analyse the data, and some interesting findings were obtained. Our study enhances our understanding of behavioural finance in the setting of an Asian financial centre, namely Hong Kong.

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  • Tai-Yuen Hon, 2012. "The Behaviour of Small Investors in the Hong Kong Derivatives Markets: A Factor Analysis," JRFM, MDPI, vol. 5(1), pages 1-19, December.
    • Handle: RePEc:gam:jjrfmx:v:5:y:2012:i:1:p:59-77:d:28409
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    References listed on IDEAS

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    1. John R. Graham & Campbell R. Harvey & Hai Huang, 2009. "Investor Competence, Trading Frequency, and Home Bias," Management Science, INFORMS, vol. 55(7), pages 1094-1106, July.
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    Cited by:

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    2. Raya Panjaitan & Ika Pratiwi Simbolon, 2020. "Financing and Herd Behaviour in Financial Crises: Investment Decision," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(4), pages 1089-1096.
    3. Ali Shaddady & Mohammed Alsaggaf, 2020. "Issues that Matter When Behavioral Finance Factors Drive the Largest Initial Public Offering in the Saudi Financial Market," International Journal of Economics and Financial Issues, Econjournals, vol. 10(6), pages 106-117.

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